AUSTIN, Texas-- Aug. 28, 2003--Active Power, Inc. (Nasdaq:ACPW - News), a leading manufacturer of battery-free power quality products, announced the signing of a distribution agreement with Fuji Electric of Japan. Under the agreement, Fuji will market and sell Active Power"s CleanSource® DC products in Japan. The CleanSource DC energy storage system acts as a replacement or supplement to batteries in Uninterruptible Power Supply (UPS) systems, and is available in several power ratings ranging from 100kW - 2000kW. An initial order for two CleanSource DC units (250 kW and 500 kW) was received upon completion of the agreement. "We are extremely pleased with the opportunity to sell Active Power"s flywheel in the Japanese market," stated Mr. Kenta Takahashi, General Manager of the Power Supply Systems Group for Fuji. "We are confident that Japanese users will welcome the technology. In fact, many Japanese users are already interested in the flywheel. The environmental friendliness and the low life-cycle costs of this technology will no doubt appeal to users."

"Active Power is proud to be developing a relationship with a company of Fuji"s caliber," said Joe Pinkerton, chairman and CEO of Active Power. "Our products are a great fit for the Japanese market where environmental and space considerations are key factors in a customer"s buying decision. We look forward to a very successful alliance with Fuji."

With over 300 installations worldwide and more than 6 million hours of field operation, Active Power"s products are a proven alternative to problematic battery-based systems. In addition to the CleanSource DC products, the Active Power UPS product family is the broadest battery-free UPS line in the world, now ranging from 65 kVA to 3600 kVA. Recently recognized by Frost & Sullivan for its ability to satisfy customer needs with new and innovative products, Active Power continues to rapidly expand its product line to address the needs of new market segments and geographies. For more information visit www.activepower.com, e-mail sales@activepower.com or call 512-836-6464.

About Active Power:
Active Power, Inc. (www.activepower.com) designs, manufactures and markets battery-free power quality products that provide the consistent, reliable electric power required by today"s digital economy. An ISO 9001-registered company, Active Power is the first to commercialize a flywheel energy storage system, CleanSource® that provides a highly reliable, low cost and non-toxic replacement for lead-acid batteries used in conventional power quality installations.